Problem based on rejection of claim


Question 1: A used car salesman claims that the average price of a 2009 Honda Accord LX is $20,500. You, of course, distrust him (you feel that it is much lower) and find that a random sample of 14 similar cars has a mean of price of $19,850 with a standard deviation of $1084. Is there enough evidence to reject the salesman's claim at "alpha" = 0.05?

Question 2: Some big shot Institute claims that 25% of college graduates believe that a college degree is not worth the cost. To test this hypothesis you ask a random sample of 200 graduates and 21% agree with that a degree is not worth the cost. At "alpha" = 0.10, is there enough evidence to reject the claim?

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Basic Statistics: Problem based on rejection of claim
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